My guess would be if the pumpkin or housing that holds the ring gear is held in place by those bearings, the bearings getting sloppy caused it. Does the race look like it spun in the housing or is it just a loose fit? I have seen loose fit races in aluminum housings before and was just the way they were built. If there are galding marks in the bore where the race goes, that’s a dead giveaway.
If not, and you need to get it back together, take a center punch to the housing and knock a new race in there. Gently file the edges on the ring gear or us a drimmel tool on them only on the edges not the gear face.
Fill with a heavier oil like a synthetic 85-140 or use the regular oil with a quart of slick 50. I had an old ford pickup that had the manual granny 4 speed with warn gears. Dumped a bottle of slick 50 in it and that did wonders! It will last You a while until you source a good unit and have the time to go through that unit with all new bearings and seals.